David Jones (ASX:DJS) Interest Coverage : 29.91 (As of Jan. 2014)

David Jones Interest Coverage Chart

David Jones Annual Data
	Trend	Jul04	Jul05	Jul06	Jul07	Jul08	Jul09	Jul10	Jul11	Jul12	Jul13
Interest Coverage		Get a 7-Day Free Trial					17.54	28.46	25.01	8.86	8.54

David Jones Semi-Annual Data
	Jul04	Jan05	Jul05	Jan06	Jul06	Jan07	Jul07	Jan08	Jul08	Jan09	Jul09	Jan10	Jul10	Jan11	Jul11	Jan12	Jul12	Jan13	Jul13	Jan14
Interest Coverage	Get a 7-Day Free Trial															18.66	-	16.22	-	29.91

Competitive Comparison of David Jones's Interest Coverage

For the Department Stores subindustry, David Jones's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

David Jones's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, David Jones's Interest Coverage distribution charts can be found below:

* The bar in red indicates where David Jones's Interest Coverage falls into.

David Jones Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

David Jones's Interest Coverage for the fiscal year that ended in Jul. 2013 is calculated as

Here, for the fiscal year that ended in Jul. 2013, David Jones's Interest Expense was A$-9 Mil. Its Operating Income was A$77 Mil. And its Long-Term Debt & Capital Lease Obligation was A$128 Mil.

David Jones's Interest Coverage for the quarter that ended in Jan. 2014 is calculated as

Here, for the six months ended in Jan. 2014, David Jones's Interest Expense was A$-3 Mil. Its Operating Income was A$103 Mil. And its Long-Term Debt & Capital Lease Obligation was A$0 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

David Jones  (ASX:DJS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

David Jones Interest Coverage Related Terms

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David Jones (ASX:DJS) Business Description